Mortgage Market Braces for Sharp Drop in Loan Production in 2010 as Rates Rise, FHA Tightens
January 7, 2010
A major drop in refinance volume due to rising mortgage rates paired with expected tightening at the FHA should cause a significant pullback in mortgage production volume in 2010. Mortgage rates are already on the rise, as Freddie Mac’s weekly survey rate hit 5.14 percent for 30-year fixed-rate loans, up from the 4.71 percent in December. Rates hovered around 4.80 percent... [Includes one chart]